Over the next few years, there will be millions of tech jobs created. Existing ones will transform with new requirements and responsibilities to keep up with a rapidly changing industry. Most companies will struggle to keep pace.

Upskilling is the solution to stay relevant and empower employees. Without developing current employees’ skill sets, tech companies risk creating a growing divide between new and existing talent — and possibly not having enough people to fill crucial roles.

The Skills Gap is Growing

The tech workforce is growing rapidly and demand for tech talent is expected to reach an estimated 7.1 million jobs by 2034. Technology is constantly changing and advancing, so many of those new jobs will require skills that are still being developed. The skill set of a top tech employee five years ago could be completely obsolete five years from now, even as job openings grow.

An estimated 3.5 million cybersecurity positions are expected to go unfilled in 2025 as the need for skilled cybersecurity professionals becomes more important. McKinsey predicts less than 50% of quantum computing jobs will be filled with today’s current skill level. The skills employees may have acquired in college or at previous jobs often aren’t applicable to where the tech industry is heading.

Simply put, there’s a huge demand for skilled tech workers, but not enough skilled people to fill those roles. A recent survey found that 87% of tech leaders report facing challenges in finding skilled talent. That means companies are left with empty roles or are relying on employees with outdated skills.

Upskilled Teams Stay Competitive

The skills gap means it’s more important than ever for tech companies to upskill their workforce to stay relevant and agile. An overwhelming 97% of companies have had difficulty around hiring new IT professionals, struggling with everything from finding candidates with the right skills to low retention rates.

Tech leaders say that skills gaps and staffing challenges are negatively affecting projects, making it difficult to keep up with a dynamic industry and meet customer demand. Executives and board members also point to talent scarcity as a major risk to the success of their business. When a team doesn’t have the headcount it needs because positions can’t be filled, employees are often stretched thin. Similarly, employees who lack relevant skills in growing fields like artificial intelligence (AI) or cloud computing can’t respond to changes quickly and can feel like they are constantly playing catch-up.

Instead of spending the resources to find new talent for every role, upskilling or reskilling employees helps close the skills gap to retain teams with high-demand skills that make an impact and create a competitive advantage. Investing in upskilling not only benefits employees but also the organization as a whole. Enhancing employees’ skills in areas such as cybersecurity, AI, and cloud computing fosters stronger innovation and increased productivity. That means tech companies can lead future growth, not chase after it and worry about becoming obsolete.

The benefits of upskilling are undeniable, with 99% of organizations reporting various benefits. Among them:

• 55% of companies saw improved employee productivity.
• 52% of companies saw Increased employee retention.
• 51% of companies saw decreased skills gaps.
• 48% of companies saw a stronger learning and development culture.
• 48% of companies saw a more flexible workforce.

Upskilling isn’t something companies can wait to do. The best results and highest return on investment come from prioritizing it now.

Keeping Pace With Tech Skill Growth

As technology changes and jobs evolve, the next generation of tech talent is preparing for a career — one that hopefully includes the most in-demand skills. Talented new workers are finishing college and other educational programs with new sets of skills. If companies aren’t upskilling their employees in the same areas, there is a very real chance of a growing skills gap between existing and new talent. Companies have to keep their current workforce up to date on in-demand skills to ensure current and new employees are speaking the same language and playing on the same field.

AI skills are at the top of nearly every tech company’s upskilling needs. AI is advancing at a breakneck pace and companies and employees must stay on top of new skills and advancements or they will undoubtedly be left behind.

In just the last few years, job postings requiring skills in generative AI jumped by more than 1,800%. At the same time, demand for tech skills that were once relevant declined. The individuals who will fill those AI roles will be those who advance their skills and lean into new technology now.

While AI is a must-have skill that is continually evolving, it’s not the only skill that matters. To nurture existing talent with top tech skills, companies must be aware of the skills higher education programs are training students in to prepare them for a tech career. These skills should be the foundation of the upskilling curriculum:

• Cybersecurity: Cyberattacks are increasing and evolving and tech companies and employees need to stay current with threat patterns and effective protection measures.
• Cloud computing: As more companies move to the cloud, all employees need to be skilled in creating and navigating cloud platforms.
• Full-stack development: Full-stack developers are in high demand because they can work on the front-end and back-end. These versatile skills are useful to any employee.
• DevOps: No matter the role, tech employees can benefit from upskilling DevOps skills to improve development processes.
• Immersive environments: This includes augmented reality (AR) and virtual reality (VR).
• Data science and analytics. Data is foundational to tech companies. Employees need to know how to gather, clean and analyze data, especially to input into AI-powered systems.

Where to Start Upskilling

Upskilling is essential to staying relevant and attracting (and retaining) top talent in an increasingly fast-paced and tech-focused world. Tech companies that don’t embrace upskilling and learning risk being left behind and facing a growing skills gap in employees. Future-proofing your company means leaning into upskilling and staying close to the curve. Look to higher education programs to better understand where to start.

There isn’t one right path for upskilling. The key is to stay agile and build a culture of growth and learning in your company. With an eye to the future and a sense of the most in-demand and essential skills, companies and employees can build on their current skills to stay relevant and lead a transforming tech industry.